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Knoll, Inc. (NYSE:KNL): Commentary On Fundamentals

Simply Wall St

As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Knoll, Inc. (NYSE:KNL), it is a financially-healthy company with a strong track record high-quality dividend payments, trading at a discount. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Knoll here.

Good value with adequate balance sheet and pays a dividend

KNL's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. KNL appears to have made good use of debt, producing operating cash levels of 0.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. KNL is currently trading below its true value, which means the market is undervaluing the company's expected cash flow going forward. Investors have the opportunity to buy into the stock to reap capital gains, if KNL's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, KNL's share price is trading below the group's average. This supports the theory that KNL is potentially underpriced.

NYSE:KNL Intrinsic value, August 13th 2019
NYSE:KNL Intrinsic value, August 13th 2019

For those seeking income streams from their portfolio, KNL is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.0%.

NYSE:KNL Historical Dividend Yield, August 13th 2019
NYSE:KNL Historical Dividend Yield, August 13th 2019

Next Steps:

For Knoll, there are three key factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for KNL’s future growth? Take a look at our free research report of analyst consensus for KNL’s outlook.

  2. Historical Performance: What has KNL's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KNL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.